Purpose

In order to diversify the Council’s investments further, ArlingClose, our treasury advisors suggested offering a credit facility to a Housing Authority that they have vetted and approve for us to work with.

Offering this credit facility will earn a fee for the Council on any credit not utilised. If any of the credit facility is used, the Council will earn equivalent to current market conditions interest on that credit.

Decision

Option 1 was selected and approved as it provided the best return on investment for the next three years.

Alternative options considered

Option 1 - Agree to provide a credit facility that could be utilised for the following three years with the option to extend a further two years. Option 2 - Do nothing and continue with current investment strategies